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Informist, Friday, Jul. 31, 2026

 

--Thermax: See order bookings in FY27 exceeding order bookings in FY26 

--CONTEXT: Comments by Thermax mgmnt in post-earnings analyst call 

--Thermax: Plan to bring down govt, bio-CNG orders 

--Thermax: Hope to win 2 cooling deals in US data centre solutions in Q2-Q3 

--Thermax: Good order pipeline in West Asia in FY27, better than FY26 

--Thermax: Revenue from green solutions should continue to go up 

--Thermax: Aim double-digit EBITDA growth from chemicals business going ahead 

--Thermax: Aim to up profitability, revenue growth from industrial business 

 

By Avishek Rakshit and Ruchira Kagita

 

KOLKATA/MUMBAI – Course-correcting "past mistakes" that resulted in burdened projects for the company, Thermax Ltd. aims to bag new orders in the current financial year, which will exceed what it secured in the last financial year, a senior company official said on Friday. 

 

The company will focus more on getting orders from private companies and entities and reduce its focus on orders from government-owned entities, including public sector enterprises. It also includes the company reducing its focus on potential customers from the bio-compressed natural gas vertical. 

 

"We've been saying now for now few quarters that we realise we made a couple of mistakes. And then in the last three years, we have been working to bring these mistakes and the impact of these mistakes down to zero," Managing Director and Chief Executive Officer Ashish Bhandari told sector analysts in a post-earnings conference call.

 

His comments follow Thermax posting a significant year-on-year fall in its consolidated net profit for the June quarter and a moderate rise in revenues, and missing the Street's estimates by a very wide margin. Its bottom line fell on year after two quarters of growth while the top line continued to grow for a third quarter, but slower than in the March quarter. Thermax's consolidated net profit for the June quarter fell over 83% on year to INR 252.4 million and consolidated revenue rose nearly 7% on year to INR 23.03 billion. 

 

"I think the mistakes that have happened have happened. We can't continue to cry our entire quarters in the entire year about it. But there's a significant focus on just executing projects better," Bhandari said, without elaborating on the mistakes by the company in the past.

 

Bhandari said government projects, which were won by the company in the past through competitive bidding on specific terms set by government entities, tend to "go on forever" and such customers are "highly demanding." 

 

"So, there is a whole set of government projects which we're not saying we will never do them, but we will do them at a price point and which are commensurate with the risk that you are taking," he said.

 

For instance, in Tamil Nadu, the company completed two projects during the period where the government changed. As the government changed, these two projects were just put on hold for no particular reason, the company official said. 

 

As a result, the company isn't focusing on government projects where it does not see substantial financial value for the company, but rather on projects that it and only a handful of other companies have the technology and expertise to execute. The primary focus of the company will be on bagging deals from private entities.

 

In the June quarter, Thermax did order booking of INR 28 billion, as against over INR 27 billion in the same quarter last year. As on Jun. 30, its order balance stood at INR 140 billion. 

 

"But by the time the year goes through, our pipeline continues to be strong and I expect to do better than what we did last year," Bhandari said.

 

In India, the company expects to bag an order from a supercritical power project and is eyeing multiple active opportunities outside India across several verticals. It is eyeing one relatively large project for a client in West Asia which is into crude refining and petrochemicals. In Africa, the company has already concluded a deal in the June quarter but couldn't book the project then. The company now hopes to book the project in Africa in the ongoing and coming quarters. 

 

"And on top of that, we have got the data centre pipeline opening up for the US and India sub-supercritical (projects). So, subcritical and captive thermal also coming in, in addition to waste-to-energy and some of the areas where we think we can execute a couple of EPC projects also. So, overall, the pipeline is very healthy," Bhandari said. 

 

Optimistic about revenue growth from green energy solutions, Thermax aims to win two cooling project deals in the US from the data centre vertical during Jul-Dec. 

 

Going ahead, apart from strengthening its order book, Thermax is aiming for double-digit earnings before interest, tax, depreciation, and amortisation growth from its chemicals business and increase the revenue and profitability from the industrial business vertical. 

 

At 1333 IST, shares of Thermax were over 4% lower at INR 4,077 on the National Stock Exchange.  End 

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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